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Unilever's annual shareholder meeting has been snowed under by critical questions about the company's climate course. Recently, CEO Hein Schumacher announced that certain sustainability targets would be revised downward. The loudest voice of protest came from the Dutch environmental group Milieudefensie, which traveled to London with over seventy activist shareholders to hold Unilever accountable.

Activists from Milieudefensie in front of the Hilton Bankside hotel in London. | Credit: Wouter van Leeuwen

Unilever's chief executive Ian Meakins has barely begun his introduction or it's already hit the fan. A British climate activist from Greenpeace attracts attention, holds up a banner and begins what she describes as a "peaceful protest. "Mr. CEO," she shouts, addressing top executive Schumacher, "you and your board are chief plastic polluters and are responsible for this mess we've gotten caught up in." Right in front of the stage, a confetti cannon bursts open, followed by chants from more and more places in the room, "You ditch plastic, or we ditch Dove!" (Dove is one of the brands in Unilever's portfolio). Gradually, guards lead off the protesters, while Schumacher, Meakins and CFO Fernando Fernandez look on impassively.

Noise at the Hilton

It kicks off a day of climate protests. The occasion is Unilever's annual shareholder meeting, which the company is hosting at the Hilton Bankside hotel in London. All shareholders are welcome at such meetings, from large institutional investors like Blackrock to individuals with just a single share (which at the time of writing hovers around just under 50 euros). All may ask a question of Schumacher, Meakins and Fernandez, on any topic.

Goals adjusted

For example, about Unilever's market position and financial results, which Schumacher finds disappointing. But by far the most questions are about Unilever's impact on the climate and people's environment. The company has come under fire recently because Schumacher has chosen to water down some sustainability goals. For example, Unilever is no longer targeting a halving of plastic consumption by 2025, but a 30 percent reduction by 2026. Also, the target year to make full use of reusable, recyclable or compostable plastic has been moved from 2025 to 2030. A huge step backwards, many environmental organizations believe, especially since Unilever, under former CEO Paul Polman, actually received much praise for its sustainability efforts.

In London, Schumacher took the moment to defend himself. "Some media have taken our new plans as a step back, but we are simply talking about more realistic goals. It's also leadership to recognize that." He indicates that sustainability is "at the heart of Unilever" and will always be there. According to him, this is evidenced by the fact that the new climate plan enjoyed strong shareholder support. Meakins agrees with this approach. "We remain determined to become a more sustainable company and believe our efforts are the right ones."

75 shareholders

But the message is not believed, and the questions from the floor keep coming. The loudest voice is from Milieudefensie, which traveled by bus from Amsterdam to London with 75 Dutch shareholders. Earlier Milieudefensie won Shell's historic lawsuit, now it is taking ING to court. With other companies, for example Ahold Delhaize and thus Unilever, the organization wants to enter into talks before such a step is discussed.

For the activists, Schumacher's new plans are merely oil on the fire; they have long felt that Unilever should step up its game. Recently, Milieudefensie commissioned a study by research firm Profundo, which showed that Unilever has not set concrete targets for 66 percent of its greenhouse gas emissions. And if the company continues on its current footing, it is on its way to a climate damage commitment of 268 billion euros by 2050.

Yes or no?

That's why activist shareholders stand with banners outside the Hilton prior to the meeting. But in the meeting itself, they take a milder approach than Greenpeace. One by one they raise their hands, make a plea of several minutes, and all conclude with the same question: can Unilever pledge to reduce its CO2 emissions throughout the value chain by 48 percent by 2030 compared to 2019? "Yes or no?"

A commitment from Schumacher did not come in the end. "I'm not going to answer yes or no to this. That would be very unwise, since we do not have the same definition of value chains as you and do not use the same measurement methods."

Wrong company

Slightly touched, it seems, he tries to point out that Unilever actually scores well compared to other companies. Moreover, the concern would have had its targets approved by the Science-Based Targets Initiative (SBTi). "I very much appreciate that you have traveled from the Netherlands to enter into dialogue with us. Our company stands for that dialogue, too, and you know it." And later: "I almost think you are with the wrong company, because there are other companies with which you can enter into this dialogue much better."

But Milieudefensie says they are at exactly the right company. After a multi-hour meeting, the activists have had enough and leave the room singing loudly. With few questions remaining, Meakins then quickly hammers the meeting to a close.

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